HUL, GlaxoSmithKline shares close lower after announcement of completion of' merger

Shares of Hindustan Unilever and GlaxoSmithKline Consumer Healthcare Ltd on Wednesday fell by up to 5.2 per cent after announcement of completion of GSKCH merger with the FMCG major.

Hindustan Unilever scrip declined 5.17 per cent to close the trade at Rs 2,179.25 on the BSE. During the day, it dropped 6 per cent to Rs 2,159.90.

GlaxoSmithKline Consumer Healthcare scrip also fell by 4.63 per cent to close at Rs 9,530.55 after tumbling 5.58 per cent to Rs 9,435.20 in intra-day trade.

Both these companies had scaled their one-year highs during the day on the BSE.

FMCG major Hindustan Unilever on Wednesday announced completion of GSKCH with itself.

The company has received all necessary regulator approvals along with the National Company Law Tribunal for the merger of GSKCH into the company, HUL said in a statement.

In addition, the board of HUL also approved acquisition of popular health drink brand Horlicks from GSK for a consideration of Euro 375.6 million (Rs 3,045 crore), exercising the option available in the original agreement between its parent firm Unilever and GSK. "This will enable HUL to utilise cash on its balance sheet and create value for shareholders. In addition, it will enable HUL to drive better salience in a local context. The other brands which were under the ownership of GSKCH like Boost, Maltova and Viva come to HUL's brand portfolio by virtue of the merger," the statement said.

On December 3, 2018 HUL had announced merger of GSKCH, which was subject to obtaining necessary approvals.